A financial goal planner is as much a curse as it is a blessing! A goal planner is the simplest way to recognise the impact of inflation for long-term goals and the need to combat it with a combination of (a) with a portfolio that produces a return above inflation (after taxes!) and (b) by investing enough. ‘But what if I cannot invest enough for my financial goals?’ is a common problem. In this post, I revisit this issue triggered by a recent thread in Facebook Group, Asan Ideas for Wealth.
Here is a list of suggested New Year Resolutions for Investors based on three principles: imbibe the basis, implement it as soon as possible and ignore the noise. To me, personal finance is nothing more than common sense. And common sense is nothing but mathematics expressed in a spoken language. Before I started the blog, I knew nothing about investor behaviour and aspects of behavioural finance. It was irrelevant to me. Now I find myself learning about the different ways in which people handle their finances and how different ‘attitude towards money’ can be.
Download a free google spreadsheet portfolio tracker for stocks, mutual funds and fixed deposits. Use it to store important account nos for quick reference and track the progress of your financial goals. Get daily or periodic email alerts on your portfolio growth. I am so proud to state that this spreadsheet has been entirely developed by friends.
One of the key advantages of this sheet is that a same stock or fund can be mapped to multiple goals. The asset allocation of each goal is tabulated and can be compared to the desired allocation. This makes rebalancing easy.
Buying a house is often an emotional decision and as I have argued before, it makes no sense to use buy vs rent calculators. In this post, I discuss the pros and cons of buying a house as soon as possible vs later vs never. Regardless of what decision we make (or have made) it is important to list all considerations, spend some time on each item and then decide.
Yamini Sood, VP sales of DSP Blackrock argues that buying a house is more important than investing or building wealth as it is an animal instinct in this fantastic post: Home IS where the holy grail is.
Deciding where to invest, when and how much in each instrument for a given financial goal is known as asset allocation – it is the key to successful money management. For a given financial goal, how do I determine the asset allocation? That is, how do I decide the amount of equity exposure and therefore, fixed income or debt exposure? Let us try and discuss this and use a calculator to see how different asset allocations will affect the future corpus intended for a financial goal.